The widow and daughter of slain drug lord Carl Williams will be forced from their Melbourne home, with the property to be seized and sold by the Australian Taxation Office to settle a longstanding family debt. Roberta Williams learned on Wednesday that she had failed in her appeal to stop the ATO selling the Essendon house - worth more than $1 million - left to her daughter Dhakota by Carl's father, George Williams. George, who died in 2016, had struck a settlement deal with the ATO to mortgage his Primrose Street house, but died with $740,000 still owing. In March, the Supreme Court of Victoria determined Roberta had no claim to the house and made orders for it to be sold to cover George's liabilities. In her appeal, Roberta argued a deal had been made by Carl with Victoria Police, including wiping George's tax debt, in exchange for information about a series of gangland murders. Carl was bashed to death inside Barwon Prison in 2010 before he could testify in court and Victoria Police cancelled its offer. The ATO argued that it had no involvement in Carl's deal with Victoria Police. In her published findings, Justice Joanne Cameron said George Williams was informed and knew his tax debt had not been discharged. She said Roberta, in documents lodged with the court, claimed she'd overheard conversations George had with the tax office, "where he expressed his anguish over the alleged tax debt and he told them that he was very sick and suffered from heart problems and depression". But Justice Cameron said that was insufficient for her to determine the ATO knew about George's health or that he had a disability impeding his ability to act in his own best interests. "It is never the case that decisions of this nature which affect the rights of individuals, in this case to have a roof over their head ... weigh lightly upon the court. Quite the contrary," she said in her decision. "However ... the appeal has no merit, was bound to fail and ought be dismissed in its entirety." On Wednesday, pro bono barrister John Selimi advised Justice Cameron no ruling for Roberta to pay costs could be made, as she was bankrupt. Australian Associated Press

Roberta Williams loses fight over Essendon house

Roberta Williams is seen leaving the Supreme Court in Melbourne. Picture: AAP

The widow and daughter of slain drug lord Carl Williams will be forced from their Melbourne home, with the property to be seized and sold by the Australian Taxation Office to settle a longstanding family debt.

Roberta Williams learned on Wednesday that she had failed in her appeal to stop the ATO selling the Essendon house - worth more than $1 million - left to her daughter Dhakota by Carl's father, George Williams.

George, who died in 2016, had struck a settlement deal with the ATO to mortgage his Primrose Street house, but died with $740,000 still owing.

In March, the Supreme Court of Victoria determined Roberta had no claim to the house and made orders for it to be sold to cover George's liabilities.

In her appeal, Roberta argued a deal had been made by Carl with Victoria Police, including wiping George's tax debt, in exchange for information about a series of gangland murders.

Carl was bashed to death inside Barwon Prison in 2010 before he could testify in court and Victoria Police cancelled its offer.

The ATO argued that it had no involvement in Carl's deal with Victoria Police.

In her published findings, Justice Joanne Cameron said George Williams was informed and knew his tax debt had not been discharged.

She said Roberta, in documents lodged with the court, claimed she'd overheard conversations George had with the tax office, "where he expressed his anguish over the alleged tax debt and he told them that he was very sick and suffered from heart problems and depression".

But Justice Cameron said that was insufficient for her to determine the ATO knew about George's health or that he had a disability impeding his ability to act in his own best interests.

"It is never the case that decisions of this nature which affect the rights of individuals, in this case to have a roof over their head ... weigh lightly upon the court. Quite the contrary," she said in her decision.

"However ... the appeal has no merit, was bound to fail and ought be dismissed in its entirety."

On Wednesday, pro bono barrister John Selimi advised Justice Cameron no ruling for Roberta to pay costs could be made, as she was bankrupt.